The consortium for Jet Airways will have to deposit a performance security by November 3
There isn’t much for lenders in the Kalrock-Jet Airways deal. Over 90 per cent of the money is gone. There is no clarity on what lies ahead for Jet under the consortium. Still, it is better than a no-deal, total write-off, bankers say.
Oil prices, the major cost of an airline, are low and expected to remain low for the next few years. Air traffic is slowly picking up.
Even as they prepare to take over the controls at the airline, the Kalrock-Jalan combine have a tough maneuvering to do. Jet Airways would want to make use of positive data trends to start off on a strong foot.
Will Jet Airways take off again? Let’s find out in this edition of 3-Point Analysis
This is the first time that an airline has been admitted under the Insolvency and Bankruptcy Code (IBC) and the environment could well be willing to make this a model example for the success of IBC.
Jet Airways' insolvency process had innumerable twists and delays that prompted many to write it off. However, it has finally managed to find a new owner. Will the turbulence end?
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The combine has polled a majority of the votes from lenders
State Bank of India is the lead lender. The carrier owes banks Rs 8,000 crore and faces total claims of Rs 40,000 crore.
The Jalan-Kalrock Consortium has not made any comment on the ongoing resolution process of Jet Airways, says Manoj Madnani of Kalrock Capital
The voting on two bids for Jet Airways may take up to two weeks to complete. But, the attempt is to complete it sooner.
The legal issue pertains to the provision of Insolvency and Bankrupcty Code. But it's too early to say if the development will impede the insolvency process.
All eyes are on the banks if they will take a decision on the winning bid by October 7, the last working day of Rajnish Kumar, Chairman of SBI, the lead lender to Jet Airways
The consortium has shot off a letter to the CoC, alleging that FSTC's revision is a 'total disregard to the timelines'
The development comes after the consortium led by Flight Simulation Technique Centre upped its offer. The new deadline is unclear
There were pending buy orders of 500 shares, with no sellers available.
While both the suitors have made final tweaks to their proposals and little may separate them, the Kalrock Capital-led consortium is said to have its nose ahead in the race to own Jet Airways
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Up till now, airlines were operating at 45 percent of their pre-COVID level capacity.
The reworked bids will be now evaluated by the Committee of Creditors, consisting of the lenders
The insolvency process was to be completed by August 21.
The low-cost airline must urgently look at ways to turn the corner.
Jet Airways acquired the six aircraft and their engines against a lump sum of $13,000,000, which it raised from the sale of its office building in the Bandra-Kurla Complex business area of Mumbai.
The airliner has faced a series of accusations of unpaid dues, even being dragged to the NCLT since it was grounded in April 2019